Paytm IPO gets shareholder nod

Mumbai: Digital payments firm Paytm’s shareholders on Monday approved a resolution for the company to raise Rs 12,000 crore in fresh shares through an initial public offering (IPO), according to sources close to the company.

This makes the public listing of India’s second most valued startup all but official.

The Noida-based fintech firm is now expected to file its IPO prospectus detailing the offer in the coming weeks, with an aim to make its debut on the Indian exchanges in November 2021.

The Paytm shareholders, in the Extraordinary General Meeting (EGM) on Monday, also approved the declassification of founder and chief executive Vijay Shekhar Sharma as a promoter to ease compliance requirements. Sharma will continue as the managing director and CEO of Paytm, one of the persons cited above added.

Paytm’s IPO is expected to have a secondary element of around Rs 4,600 crore—where investors will sell their stake directly through the exchanges during the IPO. This is likely to take the total offer size to Rs 16,600 crore, the source added.

A Paytm spokesperson couldn’t be immediately reached for comments.

The shareholders who attended the EGM include Paytm’s current and ex-employees as well as its investors—institutional and individuals.

They also approved other resolutions aimed towards preparing the firm for the IPO such as finalising the ‘Articles of Association’ as well as changes to its Employee Stock Options Plans as per regulatory norms, the sources added.

reported last week that Paytm’s IPO will be worth around Rs 16,600 crore (about $2.23 billion) and that the Noida-based fintech firm is likely to file a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) soon after its extraordinary general meeting (EGM).

The company is seeking a valuation in the range of $24-$30 billion, according to sources. The startup, which is backed by China’s Alibaba and Japan’s SoftBank, is currently valued at $16 billion.

Ant Group and Alibaba own nearly 38% of One97 Communications, Paytm’s parent entity. SoftBank holds 18.73%, while Elevation Capital (formerly SAIF Partners) has a 17.65% stake.

IPO-bound Paytm
has also made several changes to its board of directors recently.

Douglas Lehman Feagin, senior vice president at Ant Group has joined the board as an additional director, replacing Chinese national Eric Xiandong Jing, the chief executive of fintech conglomerate Ant Group.

Meanwhile, Ashit Lilani, the managing partner of Saama Capital, an early backer of Paytm, has also joined the company board as an independent director. Michael Yuen Jen of Alibaba and Todd Anthony Combs of Berkshire Hathaway have left the board, according to regulatory filings accessed by ET earlier last week.

Vikas Agnihotri of Softbank Vision Fund has joined Paytm’s board as an alternate director.

Ting Hong Kenny Ho and Guoming Cheng of the Alibaba Group who held the positions of alternate director have also seen their terms expire, according to regulatory filings.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.